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sneeze there and a cold here!
the first time since November 1998, the technology stock index
Nasdaq has plummeted to new depths bringing with it the dreams
of many investors and subsequent fear of a backlash in the
Indian IT sector. Everyday one reads different reports of
how manpower consultants who used to charge their US clients
$80 an hour cannot ask beyond $20 now for the same set of
skills, how Indian websites are flooded with resumes of those
seeking employment in their home country, and how salaries
and fancy perks in the software sector are coming to realistic
this bleak scenario, a survey conducted by the Confederation
of Indian Industry (CII) offers a silver lining for the beleaguered
IT sector. The survey points out that the usage of information
technology among the domestic small and medium enterprises
has risen compared to the previous years. The survey involved
respondents from all over the country, covering a broad spectrum
of industry groups. What are the benefits they have got from
increased IT usage? Faster execution, better customer service,
increased productivity, improved quality and better relationship
with partners were the key benefits.
categorized the usage of IT in an organization into heavy,
medium and light, CII notes that the heavy use is in the areas
of finance, sales, marketing and corporate. The medium usage
is the in areas of research and development, distribution
and logistics while light usage is in the areas of human resource
development, administration and manufacturing.
study should serve as an eye-opener to the information technology
sector in the country, which has always ignored SMEs in favor
of large corporates, governments, and export orders. It could
well turn into a golden opportunity for our domestic software
industry to build cost-effective, easy-to-use products and
solutions to cater to this sector, which is bound to grow
in the years to come.
the level of computerization in the SME segment is limited,
there is only one way in which it can grow and that is upwards.
Coupled with the boom in Internet usage, which would ride
on the broadband infrastructure, the domestic market prospects
sound good for both the IT and communications industries.
If the focus shifts inward, the country need not catch a cold
each time US sneezes.
the growth of the PC industry is not something to gloat about.
The total number of shipments was estimated to be 1.7 million
in the year 2000 compared to 1.02 million in 1999, registering
a growth of 67 per cent in terms of volume. The installed
base has gone up to 5.7 million compared to four million last
year. If this trend continues through the course of the current
year, it would augur well for the IT industry. What could
ultimately fuel the boom in the consumer segment is a further
slash in prices-say, up to Rs 20,000 for a good PC. Of course,
with a monitor!
of technology options for building both corporate networks
and connecting to the Internet, Frame Relay is now coming
up as an effective choice. Although Indian corporates have
largely chosen dedicated leased line circuits over other technologies
such as X.25 and ATM, Frame Relay is also being considered
actively these days.
focus feature as usual highlights what are the technological
benefits of Frame Relay, why it is suited for both domestic
and international connectivity and how does it compare with
I have decided to hand over the baton of editorship of Network
Magazine which started off as LAN Magazine (Indian Edition)
in November 1998 and was later rechristened Network Magazine
last May. Dear readers, I take this opportunity to thank each
of one you for the consistent support and regular feedback
without which it would have been difficult for me to steer
the magazine forward. Once again my heartfelt thanks to one